America’s Cup could cost S.F. millions

Stalled efforts to bring in big donors could put San Francisco taxpayers on the hook for upward of $20 million for the America’s Cup.

With the 55 days of steroidal sailing just six months away, fundraising efforts to cover the estimated $31 million to $34 million cost for police, cleanup, transportation and other expenses have pretty much hit the wall at $14 million.

Originally pitched as a competition between as many as 12 international teams, the race is now down to three entries. The shrinking size of the event has helped reduce costs, but it also substantially cut into corporate interest in sponsorships, which city officials originally thought would bring in $300 million.

Recreation and Park Commission President Mark Buell and his group have managed to raise $9 million from local donors and another $5 million from the race organizers in the form of a loan that may not have to be repaid.

Now those sources are about tapped out. So Mayor Ed Leehas personally taken up the drive to raise money.

“He’s optimistic that with a concerted effort, he can keep fundraising on par with expenses as they come in,” said Lee’s spokeswoman, Christine Falvey.

The mayor is also enlisting help from Sen. Dianne Feinstein, House Democratic leader Nancy Pelosiand Board of Supervisors President David Chiu.In other words, everyone is on this and hoping it works out. But if it ends in a bailout, the feeling at City Hall seems to be that it’s worth it.

“Between the money that will come in from tourists and the crowds and the sales taxes it will generate,” Buell said, “I still think that, no matter what, it will come out a boon for the city.”

Still, time is short, money is tight – and those who have been working the phones tell us it’s not easy asking for money to help finance a yacht race being put on by Larry Ellison, one of the richest men in the world.

Texas treat: Publicly, Gov. Jerry Brown is calling Texas Gov. Rick Perry’s three-day trip to try to lure California businesses to the Lone Star State “barely a fart.” But privately, he’s kind of happy about it – figuring the poaching threat plays right into his desire to streamline California’s environmental laws to make the state more business-friendly.

“The stage is set – he’s opened the umbrella wider than any other Democratic governor has ever done before,” said one key aide. “Now he’ll stand back and let the Legislature make their moves.”

Betting line: Now that San Francisco Mayor Ed Lee has announced he intends to appoint Supervisor Carmen Chu as city assessor, speculation is growing about her likely replacement in District Four.

The mayor said he plans to spend the next month hearing from the community and various political constituencies before announcing his pick, but we’re hearing he may be leaning toward Chu’s aide, Katy Tang. She is well-regarded in progressive circles and would have a strong chance of being re-elected in a district where Asian Americans make up the majority.

Another top contender is former prosecutor Suzy Loftus – who not only would be the lone white woman and mother on the board, but is seen as someone not afraid to speak her mind.

Burned: Peninsula school districts weren’t the only losers in a failed lawsuit against San Mateo County seeking to recover $20 million in lost Lehman Bros. investments – so were the county’s taxpayers.

A dozen school districts accused the late county Treasurer Lee Buffington of ignoring prudent investment standards by putting so much of their money into Lehman before the company’s 2008 collapse.

A three-judge state appeals court panel, however, ruled otherwise.

So now, in addition to the $20 million loss, taxpayers are on the hook for the county’s legal bills – which, as of Dec. 31, totaled $1.2 million to the high-powered San Francisco law firm Keker and Van Nest, which the county hired to fend off the school suit.

Keker was brought in because the county counsel’s office works for both the county and the school district.

“That was our point all along,” said winning lawyer Stuart Gasner of Keker’s firm – it “was a lot of robbing Peter to pay Paul. What a waste of time.”

By the way, there may be more legal bills.

Farley Neuman, the San Francisco attorney who filed the case on behalf of the schools – and who gets paid only if he wins – said he is still mulling an appeal to the state Supreme Court.

“In our view, there is an important public policy issue here,” he said.

San Francisco Chronicle columnists Phillip Matier and Andrew Ross appear Sundays, Mondays and Wednesdays. Matier can be seen on the KPIX-TV morning and evening news. He can also be heard on KCBS radio Monday through Friday at 7:50 a.m. and 5:50 p.m. Got a tip? Call (415) 777-8815, or e-mail matierandross@sfchronicle.com.